3 Reasons Why Pepe Coin Price Could Drop 57%
Pepe coin has been facing significant challenges recently, with a bearish trend becoming more apparent. Several factors, including whale activity and on-chain data, are signaling potential trouble for the token.
Whale activity and data from CoinGlass indicate a lack of confidence among large holders. Massive withdrawals from exchanges suggest a selling mentality among traders, and this could potentially lead to a sell-off if retail traders follow suit.
CoinGlass data also shows a shift in market sentiment, with the OI-weighted funding rate dipping into negative territory. This suggests that short positions are outnumbering long positions, and traders are betting on a price decline. The declining open interest further highlights a reduction in bullish momentum.
On-chain metrics from Santiment provide additional bearish signals for Pepe coin. The age-consumed metric has shown significant spikes, indicating large movements of older tokens. This often precedes sell-offs by long-term holders, signaling a lack of confidence in the token’s future performance. Additionally, the supply of Pepe on exchanges has increased, which can result in increased selling pressure and drive prices down.
Furthermore, the top non-exchange addresses are not accumulating more Pepe, suggesting that major investors are not buying more of the token. This undermines the bullish prospects for Pepe coin. Whale transaction counts for large amounts have also shown frequent and significant activity, indicating heightened selling pressure from major holders.
Adding to the bearish cues is a technical setup called the “descending triangle pattern.” This pattern features a downward-sloping upper trendline and a flat lower trendline, with the price finding it difficult to break the support level. This setup suggests intensifying selling pressure and weaker rallies. If this bearish setup is confirmed, it could result in a 57% drop in Pepe coin price, reaching the projected target near $0.00000375.
In conclusion, Pepe coin is facing several challenges that could lead to a significant drop in its price. Whale activity, on-chain data, and the bearish technical setup all point to potential trouble ahead for the token. Investors should be cautious and closely monitor these indicators.